Supplemental Guarantor Information

The Company's obligations under the 2018 Senior Notes are not guaranteed by all of the Company's subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

The following condensed consolidating financial information includes balance sheets, statements of operations and cash flow information for the parent company, the Guarantors, as defined and listed in the indenture for the 2018 Senior Notes (the “Guarantor Subsidiaries”), collectively, and for all other subsidiaries and joint ventures of the Company (“the Non-Guarantor Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect wholly-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the 2018 Senior Notes, on a joint and several basis.

There are no significant restrictions on the parent company's ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.

As of December 31, 2011, each of the Company's subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, the origination of mortgages for resale, title insurance or similar financial businesses relating to the homebuilding and home sales business and certain subsidiaries that are not wholly-owned by the Company or another subsidiary.

In the condensed financial tables presented below, the parent company presents all of its wholly-owned subsidiaries as if they were accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Non-Guarantor Subsidiaries.



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Year Ended December 31, 2011
				Guarantor Subsidiaries			Non-Guarantor Subsidiaries
(In thousands)	M/I Homes, Inc.								Eliminations		Consolidated

Revenue	$	—		$	551,958		$	14,466	$	—	$	566,424
Costs and expenses:
Land and housing	—			467,130			—		—		467,130
Impairment of inventory and investment in Unconsolidated LLCs	—			21,993			—		—		21,993
General and administrative	—			44,438			8,226		—		52,664
Selling	—			43,534			—		—		43,534
Interest	—			14,050			955		—		15,005
Total costs and expenses	—			591,145			9,181		—		600,326

(Loss) income before income taxes	—			(39,187		)	5,285		—		(33,902		)

(Benefit) provision for income taxes	—			(1,784		)	1,759		—		(25		)

Equity in subsidiaries	(33,877		)	—			—		33,877		—

Net (loss) income	$	(33,877	)	$	(37,403	)	$	3,526	$	33,877	$	(33,877	)



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Year Ended December 31, 2010
				Guarantor Subsidiaries			Non-Guarantor Subsidiaries
(In thousands)	M/I Homes, Inc.								Eliminations		Consolidated

Revenue	$	—		$	602,140		$	14,237	$	—	$	616,377
Costs, expenses and other loss:
Land and housing	—			511,408			—		—		511,408
Impairment of inventory and investment in Unconsolidated LLCs	—			12,538			—		—		12,538
General and administrative	—			45,929			8,029		—		53,958
Selling	—			48,084			—		—		48,084
Interest	—			8,471			944		—		9,415
Other loss	8,378			—			—		—		8,378
Total costs, expenses and other loss	8,378			626,430			8,973		—		643,781

(Loss) income before income taxes	(8,378		)	(24,290		)	5,264		—		(27,404		)

(Benefit) provision for income taxes	—			(3,291		)	2,156		—		(1,135		)

Equity in subsidiaries	(17,891		)	—			—		17,891		—

Net loss	$	(26,269	)	$	(20,999	)	$	3,108	$	17,891	$	(26,269	)



	Year Ended December 31, 2009
				Guarantor Subsidiaries			Non-Guarantor Subsidiaries
(In thousands)	M/I Homes, Inc.								Eliminations		Consolidated

Revenue	$	—		$	555,891		$	14,058	$	—	$	569,949
Costs, expenses and other loss:
Land and housing	—			494,989			—		—		494,989
Impairment of inventory and investment in Unconsolidated LLCs	—			55,421			—		—		55,421
General and administrative	—			51,312			7,858		—		59,170
Selling	—			43,950			—		—		43,950
Interest	—			7,968			499		—		8,467
Other loss	—			941			—		—		941
Total costs, expenses and other loss	—			654,581			8,357		—		662,938

(Loss) income before income taxes	—			(98,690		)	5,701		—		(92,989		)

(Benefit) provision for income taxes	—			(32,485		)	1,605		—		(30,880		)

Equity in subsidiaries	(62,109		)	—			—		62,109		—

Net (loss) income	$	(62,109	)	$	(66,205	)	$	4,096	$	62,109	$	(62,109	)



CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2011
			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
(In thousands)	M/I Homes, Inc.								Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	43,539		$	16,254		$	—		$	59,793
Restricted cash	—		41,334			—			—			41,334
Mortgage loans held for sale	—		—			57,275			—			57,275
Inventory	—		466,772			—			—			466,772
Property and equipment - net	—		14,241			117			—			14,358
Investment in Unconsolidated LLCs	—		—			10,357			—			10,357
Investment in subsidiaries	381,709		—			—			(381,709		)	—
Intercompany	125,272		(115,058		)	(10,214		)	—			—
Other assets	5,385		8,455			756			—			14,596
TOTAL ASSETS	$	512,366	$	459,283		$	74,545		$	(381,709	)	$	664,485

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	40,759		$	497		$	—		$	41,256
Customer deposits	—		4,181			—			—			4,181
Other liabilities	—		33,589			5,759			—			39,348
Community development district obligations	—		5,983			—			—			5,983
Obligation for consolidated inventory not owned	—		2,944			—			—			2,944
Note payable bank - financial services operations	—		—			52,606			—			52,606
Note payable - other	—		5,801			—			—			5,801
Senior notes	239,016		—			—			—			239,016
TOTAL LIABILITIES	239,016		93,257			58,862			—			391,135

Shareholders' equity	273,350		366,026			15,683			(381,709		)	273,350

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	512,366	$	459,283		$	74,545		$	(381,709	)	$	664,485



CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2010
			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
(In thousands)	M/I Homes, Inc.								Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	71,874		$	9,334		$	—		$	81,208
Restricted cash	—		41,923			—			—			41,923
Mortgage loans held for sale	—		—			43,312			—			43,312
Inventory	—		450,936			—			—			450,936
Property and equipment - net	—		16,340			214			—			16,554
Investment in Unconsolidated LLCs	—		—			10,589			—			10,589
Investment in subsidiaries	418,085		—			—			(418,085		)	—
Intercompany	116,875		(102,884		)	(13,991		)	—			—
Other assets	7,141		7,625			2,606			—			17,372
TOTAL ASSETS	$	542,101	$	485,814		$	52,064		$	(418,085	)	$	661,894

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	28,631		$	399		$	—		$	29,030
Customer deposits	—		3,017			—			—			3,017
Other liabilities	—		37,305			4,811			—			42,116
Community development district obligations	—		7,112			—			—			7,112
Obligation for consolidated inventory not owned	—		468			—			—			468
Note payable bank - financial services operations	—		—			32,197			—			32,197
Note payable - other	—		5,853			—			—			5,853
Senior notes	238,610		—			—			—			238,610
TOTAL LIABILITIES	238,610		82,386			37,407			—			358,403

Shareholders' equity	303,491		403,428			14,657			(418,085		)	303,491

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	542,101	$	485,814		$	52,064		$	(418,085	)	$	661,894



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Year Ended December 31, 2011
				Guarantor Subsidiaries			Non-Guarantor Subsidiaries
(In thousands)	M/I Homes, Inc.									Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating activities	$	—		$	(27,734	)	$	(6,227	)	$	—	$	(33,961	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Change in restricted cash	—			(2,566		)	—			—		(2,566		)
Purchase of property and equipment	—			(1,314		)	(38		)	—		(1,352		)
Acquisition, net of cash acquired	—			(4,654		)	—			—		(4,654		)
Proceeds from the sale of property	—			—			—			—		—
Distributions from Unconsolidated LLCs	—			—			(752		)	—		(752		)
Net cash used in investing activities	—			(8,534		)	(790		)	—		(9,324		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			20,409			—		20,409
Principal repayments of note payable-other and community development district bond obligations	—			(52		)	—			—		(52		)
Intercompany financing	(1,733		)	8,135			(6,402		)	—		—
Debt issue costs	—			(150		)	(70		)	—		(220		)
Proceeds from exercise of stock options	1,500			—			—			—		1,500
Excess tax deficiency from stock-based payment arrangements	233			—			—			—		233
Net cash provided by financing activities	—			7,933			13,937			—		21,870

Net (decrease) increase in cash and cash equivalents	—			(28,335		)	6,920			—		(21,415		)
Cash and cash equivalents balance at beginning of period	—			71,874			9,334			—		81,208
Cash and cash equivalents balance at end of period	$	—		$	43,539		$	16,254		$	—	$	59,793



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Year Ended December 31, 2010
				Guarantor Subsidiaries			Non-Guarantor Subsidiaries
(In thousands)	M/I Homes, Inc.									Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating activities	$	—		$	(33,806	)	$	(3,496	)	$	—	$	(37,302	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Change in restricted cash	—			(19,585		)	—			—		(19,585		)
Purchase of property and equipment	—			(1,480		)	(80		)	—		(1,560		)
Investments in and advances to Unconsolidated LLCs	—			—			(1,229		)	—		(1,229		)
Distributions from Unconsolidated LLCs	—			—			13			—		13
Net cash used in investing activities	—			(21,065		)	(1,296		)	—		(22,361		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of senior notes, including transaction costs	(166,088		)	—			—			—		(166,088		)
Proceeds from issuance of senior notes	197,174			—			—			—		197,174
Proceeds from bank borrowings - net	—			—			8,055			—		8,055
Principal repayments of note payable-other and community development district bond obligations	—			(325		)	—			—		(325		)
Intercompany financing	(23,517		)	30,606			(7,089		)	—		—
Debt issue costs	(7,568		)	—			(306		)	—		(7,874		)
Proceeds from exercise of stock options	12			—			—			—		12
Excess tax benefit from stock-based payment arrangements	(13		)	—			—			—		(13		)
Net cash provided by financing activities	—			30,281			660			—		30,941

Net (decrease) increase in cash and cash equivalents	—			(24,590		)	(4,132		)	—		(28,722		)
Cash and cash equivalents balance at beginning of period	—			96,464			13,466			—		109,930
Cash and cash equivalents balance at end of period	$	—		$	71,874		$	9,334		$	—	$	81,208



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Year Ended December 31, 2009
				Guarantor Subsidiaries			Non-Guarantor Subsidiaries
(In thousands)	M/I Homes, Inc.									Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities	$	—		$	55,159		$	13,322		$	—	$	68,481

CASH FLOWS FROM INVESTING ACTIVITIES:
Change in restricted cash	—			(19,155		)	—			—		(19,155		)
Purchase of property and equipment	—			(3,975		)	(33		)	—		(4,008		)
Proceeds from the sale of property	—			7,878			—			—		7,878
Investments in and advances to Unconsolidated LLCs	—			—			(5,003		)	—		(5,003		)
Distributions from Unconsolidated LLCs	—			—			809			—		809
Net cash used in investing activities	—			(15,252		)	(4,227		)	—		(19,479		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(10,936		)	—		(10,936		)
Principal repayments of note payable-other and community development district bond obligations	—			(10,782		)	—			—		(10,782		)
Intercompany financing	(50,415		)	53,525			(3,110		)	—		—
Net proceeds from issuance of common stock	52,568			—			—			—		52,568
Debt issue costs	(2,122		)	—			(196		)	—		(2,318		)
Payments on capital lease obligations	—			(91		)	—			—		(91		)
Proceeds from exercise of stock options	70			—			—			—		70
Excess tax benefit from stock-based payment arrangements	(101		)	—			—			—		(101		)
Net cash provided by (used in) financing activities	—			42,652			(14,242		)	—		28,410

Net increase (decrease) in cash and cash equivalents	—			82,559			(5,147		)	—		77,412
Cash and cash equivalents balance at beginning of period	—			13,905			18,613			—		32,518
Cash and cash equivalents balance at end of period	$	—		$	96,464		$	13,466		$	—	$	109,930